Fewer Americans than projected filed applications forunemployment benefits last week as disruptions caused by superstormSandy waned.

Jobless claims decreased by 25,000 to 370,000 in the week endedDec. 1, Labor Department figures showed today in Washington. Themedian forecast of 52 economists surveyed by Bloomberg called for adrop to 380,000. A Labor Department spokesman said there wasnothing unusual in last week's data.

The mid-Atlantic region, which employs about 14 percent of U.S.workers, is recovering after Sandy. Apart from the storm-relateddamage — which may also be reflected in the November payrollsreport tomorrow — employers will probably curb hiring until therisks from the global slowdown and looming U.S. fiscal tighteningdissipate.

“Sandy pushed up claims temporarily, and with this number we arepretty much back to where we were before the hurricane,” said GuyBerger, an economist at RBS Securities Inc. in Stamford,Connecticut, who accurately projected the drop in claims. “Layoffsare lingering at the same pace. Hiring remains relativelyanemic.”

Stock-index futures fell after European Central Bank PresidentMario Draghi said policy makers cut growth forecasts for the regionand continued to see 'downside risks.” The contract on the Standard& Poor's 500 Index maturing this month fell 0.2 percent to1,405.7 at 8:48 a.m. in New York.

Claims dropped by almost 24,000 in New Jersey two weeks ago andby 6,682 in New York, the two states most affected by the storm,today's report showed. The state data is reported with a one-weeklag.

One state was estimated last week after computer problems inOklahoma prevented it from generating the data, the LaborDepartment spokesman said as the figures were being released to thepress.

Last week also marked the period when the unadjusted data showsthe biggest percentage jump in applications, the spokesman said.Industries such as construction and tourism typically start lettingworkers go at this time of year, he said.

Estimates in the Bloomberg survey of economists ranged from360,000 to 395,000. The Labor Department revised the previousweek's figure up to 395,000, from an initially reported393,000.

The four-week moving average, a less volatile measure than theweekly figures, rose to 408,000 last week from 405,750.

Payroll Forecast

Payrolls grew by 86,000 in November after rising 171,000 theprior month, according to the Bloomberg survey median ahead ofLabor Department figures due tomorrow. The unemployment rate heldat 7.9 percent, economists predicted.

Employment probably took a hit from Sandy, the largest Atlanticstorm ever to hit the nation and one that left about 8 millionhomes and businesses without power for days after making landfallin the Northeast on Oct. 29.

Today's report showed the number of people continuing to receivejobless benefits dropped by 100,000 to 3.21 million in the weekended Nov. 24.

The continuing claims figure does not include the number ofAmericans receiving extended benefits under federal programs.

Those who've used up their traditional benefits and are nowcollecting emergency and extended payments decreased by about111,000 to 2.05 million in the week ended Nov. 17.

The unemployment rate among people eligible for benefits, whichtends to track the jobless rate, fell to 2.5 percent in the weekended Nov. 24 from 2.6 percent in the prior week.

Thirty-six states and territories reported a decline in claims,while 17 reported an increase. These data are reported with aone-week lag.

Initial jobless claims reflect weekly firings and tend to fallas job growth — measured by the monthly non-farm payrolls report —accelerates.

The bankruptcy of Hostess Brands Inc., the baker of Twinkies andWonder bread, is likely to be one source of joblessness for sometime. The Irving, Texas-based company on Nov. 22 began firing15,000 workers, temporarily keeping about 3,200 of its remainingemployees to clean plants and mothball equipment.

Among others reducing employment, Citigroup Inc. yesterdayannounced it will cut more than 11,000 jobs and pull back from someemerging markets to drive down costs as revenue dries up at globalbanks.

Declining dismissals, combined with a sustained pickup inhiring, are needed help spur consumer spending, which accounts forabout 70 percent of the economy.

Companies adding employees as business grows include Sitel, acall-center operator owned by Onex Corp., Canada's largest publiclytraded buyout firm. Sitel this week said it plans to immediatelybegin hiring 3,000 workers at customer care locations in the U.S.and Canada.

Bloomberg News

Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.